Vonage Went Nuts Today
So if you’re watching the hot movers today, you’ll notice that Vonage (NYSE: VG) went absolutely crazy. It jumped 36% on 81 million shares traded and ended at $2.17. What absolutely shocks me is not so much the share price, but that the entire float on Vonage stock was traded today. Vonage last reported a float of only 79.55 million shares.
What does this mean for Vonage stock? Who knows. But I jumped in 10,000 shares around $2.17 and sold 9,600 shares after hours around $2.31 for a quick day trade. I kept the 400 Vonage shares just for kicks because I’m curious how it’ll do tomorrow.
One thing’s for sure though, I wouldn’t want to hold a significant amount of this stock overnight. It’s too much risk because there’s no real reason I can think of, other than speculation of some iPhone app they “might” be developing, that’s causing all the wild activity on VG stock. But if I were to guess what this stock does tomorrow, I predict that based on the pattern of trading I see on my Level II screen, I would guess that it’ll shoot up 20-30% in the morning with good volume and close significantly lower than $2.17 towards the end of the day on much lower volume than today. Volume is bound to dry up on this stock and as volume drops, so will the price. That’s just a wild guess so don’t hold me to it. And as always, do your own due diligence and make good decisions!
